For a few month, we see many essential oils price increase very significantly even so the Thai baht is very strong and therefore should have at least partially cushion these increases.
Among the very increases, we will note Grapefruit, Orange, Eucalyptus, Ginger and May Chang (Litsea cubeba).
Relying on importers, it is allways difficult for us small manufacturers like us to get clear cut explanations on these increases apart from Orange, and generally speaking citruses, which are well covered in professional magazines or newsletters such as Treatt Market Report or “Perfumer and Flavorist”.
For the time being, we understand this is a firm trend for Orange & Grapefruit, demand is slightly higher than supply and the orange tree greening (a tree sickness) shows no sign of improvement in Florida which is with Brazil the largest producers worldwide as direct consequence prices are on the increase and should stay like this.
For Eucalyptus and Ginger, the increase is mostly due to a reduction of production in China which is linked to Chinese government effort to fight global warming (this is a cottage industry and small manufacturers are using wood or coal as main combustible source for distillation). Prices increased greatly from one supplier to another from +50% to +100%.
Climate change is also responsible for the May Chang (Litsea cubeba) which price doubled with the El Nino phenomenom affecting the ability of trees to produce berries.